there's some runway to go. >> josh brown? >> when in doubt, park it, shm is a short-term uni bond fund. this 1.85% yield is thetaxable equivalent of about a 3.25% yield. not bad. better than being down 10% or 15%. that's what i'm thinking about now. >> that does it for "halftime. "the exchange" begins right now. thank you very much, frank hi, everybody. i'm kelly evans. here is what's coming up on "the exchange." the best thing about the first half of the year for stocks is the fact it's almost over. we're down again today as we close out the worst start in 52 years. previous bad beginnings have been followed by strong finishes why history gives some hope for a rebound. crypto, of course, also getting crushed this year. bitcoin down 60% and while many are looking for a bottom, the bad news keeps

rolling in we have the very latest. almost as bad as bitcoin, the etf of recent ipos, lost half its value in 2022. so we are hunting for opportunity in the sell-off with three buys and a bail. but first let's start with these markets. we're well off session lows, actually at the lows today the dow down almost 600 points, if you can believe it right now we're down about 120 or a third of a percent, down a quarter% for the s&p, down half 5% for the nasdaq. tech is leading the declines today with big cap tech among the biggest losers, but these are modest as the tone has improved this afternoon. amazon, alphabet, apple down 1% to 2%. amazon, believe it or not, at 106 although split adjusted is below its pre-covid highs. this stock is basically flat over the past four years oil is taking a hit as recession concerns grow. crude is heading down for the first time since november. down 2.5%. and rh is in the spotlight as

the retailer sinks after cutting its outlook. this down 10.5% today. they cited a weaker than expected environment and a slowdown in luxury home sales. this stock is now down 60% this year jetblue also in the red today with spirit announcing it will delay the shareholder vote on its proposed merger with frontier jetblue taking that as a negative for its potential deal. what's moving higher a real grab bag here some of the clean energy stocks, bad performers in the first half, a counter trend rally with 5% to 6% gains and got to show what's happening in bond yields this kind of the key to everything, the ten year back below 3% 2.98 as yields drop globally around 3.5% before that fed meeting, weaker than expected economic data. tabor inflation ratings moving the market this way. now even though it's likely to be the s&p's worst start to the year in half a century, it is

helpful to get context on this six-month drop bob pisani is down at the new york sfok stock exchange what can you tell us >> reporter: the headlines are really bad they sound awful this is the worst start to the year since 1970, going back to nixon. that's 52 years. it looks pretty bad. is it really that bad? i want to offer a little perspective on this. we're obsessed with the calendar from january to the end of june but really there's been a lot of periods where it's six months, the market has been down more than 20% many years, i went back to 1957, the start of the modern s&p when they started that and there were 13 periods at that time when the s&p 500 has fallen 20% or more over six months. you do the math here, that's about once every five years. okay, not uncommon not that common. it's not once every 52 years and there's a lot of periods where it's much worse than 20% look at some of the worst ones here if you look carefully you'll

notice most of the worst periods were con seven trapted around the great financial crisis in 2007, 2008 and 2009. february 28, that period in 2009 for the six months down 42%. november 30, 2008, the six-month period down 36 2009 down 34.8 look at these numbers. back to '74 to get a pretty bad one. my point here is the cluster around the great financial crisis and seven of the eight worst ones have occurred in the last 20 years. they've been fairly recently and yet you look back over the last 20 years at the s&p 500. the s&p is up 270% since 2002. with those drops we've seen the point is, yes, it hasn't been a great start but many periods it's been down like this and we've recovered. people ask miko individual, we were down 20%. no on a six-month basis during covid, kelly, no six-month

period we were down more the worst was the period ended in march 2020. the six months before that only down 13% or 14%. people get this idea in their head there's some horrible thing that's happening that's never happened before, and it's not really true. long term the market tends to go up, kelly. back to you. >> all right it's like you never want to hear it after a period like this, but it's true. bob, thank you very much we appreciate it our bob pisani my next guest agrees the pendulum might have swung too far into the fear camp and should put money to work co-portfolio manager, sandy, i think this is important to check in with everybody on first half performance. what about for you down 20% and what would you say about the landscape facing into the back half >> we'd be more excited putting money to work. if you look at the vanguard value index down and yet

vanguard down 30%. i'm more inclined to buy something down 30% that offers more value than what you'd find a very crowded trade has occurred in value names, the staples, health care, utility stocks i want to really avoid those and start playing some offense here. >> what about the argument some of the growth names are permanently broken the business models just don't work >> some are. let's be honest, some of these names that came out of spacs, some don't make money, i would probably avoid some of those names that are not as on solid footing that have great cash flow characteristics things that are probably going to perform quite well, and what a great opportunity to be able to buy these things. some off 35%, 40%, that you can put away and make some good money looking out three to five years. >> so, bob was just talking about, you know, the history here and it's not that unusual

to have a period like we've just been through but what do you think the fundamental case is for sort of better environment in the back half and what do you make of rates today as well? >> yes are we going into recession? that's what we're all talking about. the reality is we probably do have some sort of shallow recession and i would argue it would be next year you were showing some of those stats from 2008-2009 that feels like yesterday. that was a scary time. we lost 11 million jobs at that time today basically anybody that wants a job can have one sure it will get tougher before the fed is finished raising rates. we should see here in july another 75 basis points or something like that. this is all self-inflicted when the fed can finally cool this economy and we saw consumer spending slow down a little bit, 0.4% this morning, then i think we can get back to some normalcy

here i think that happens probably sooner than later and i wasn't that disappointed to see a little bit of a slowdown in consumer spending. that will help the fed slow down the rapid rate hikes here to battle the red-hot economy >> one of the stocks, a couple you like on semi, palomar and one of the names that was a big pandemic winner and the reopening hangover what is the case for owning this name over the next couple of years? >> we've been involved with pools since 1996 and hold stocks for decades. we were involved in the initial public offering way back when. pool is getting a tough rap because they believe it's tied into housing, which it is. 20% of its sales and new pool builds 80% of the revenue is just boring maintenance and repair of your swimming pool these guys are as big as their top 50 competitors combined. unless you think people will let their pool turn green or black,

this would be a good place to hide and, by the way, it's down almost 40% from where it was i think this is indicative of what's going on. you're going to see them report for their second quarter, three weeks or so. i think when they do they will say the quarter was great but maybe we're seeing a little bit of a slowdown. i think those are opportunities to be able to buy and those could set the bottom for pool but many stocks and i think once they reset the expectations, and i don't mean meaningfully but a guide to where we are today. i think you could buy these stocks and that could set bottoms in the market looking forward. >> very interesting. you mentioned obviously you've been in the market a couple of decades. broadly speaking, as i said, if you have a first half the fund is down 21% but you're probably accustomed to that kind of turbulence, what do you tell clients? and what have you personally experienced in terms of hanging

on to some of these names you're confident will work in the long run but people are demanding a better explanation for why they're not working right now. >> you can do as much research as you want and things tend to go down. what we're telling our customers is, look, this is tough. we're in it. we own the same stocks that you do sometimes the best action is no action at all. don't sell while things are at a 25 or even 30% discount but is actually a good opportunity to take some money out of the more stable companies, more stable oriented, and put into the growth names this is where you have an opportunity to really make some money if you have that three to five-year horizon. somewhere in here, never going to call it the bottom, but we're getting closer to it certainly a big discount and those are putting money into 401(k) every month what a good opportunity to be able to buy things at a nice discount to where they had been

trading. we're just telling our clients, just don't do anything rash. don't feel like you need to sell down here but just hold on and that advice worked out well back in '08-'09, during the pandemic, and i think we'll get through this as well and a good opportunity to upgrade the portfolio and buy some very high quality stocks >> we appreciate the long-term -- reassuring is the word i'd use -- take in a very difficult market sandy, thanks for your time today. >> thanks, kelly meantime, in a major blow to federal government agency power, the supreme court ruling today that the epa does not have the authority to set standards on greenhouse gas emissions for power plants brian sullivan is on the news line with more including the fall y fallout for some energy stocks >> reporter: it is a blow not only to the epa but potentially other federal agencies, a 6-3 decision from the supreme court and it overturns the lower court's ruling effectively

stripping the environmental protection agency of its authority to make sweeping rules related to emissions the initial challenge came out after the epa in 2015 made an order requiring coal plants to cut production or help subsidize other forms of energy. this was led by west virginia. lower courts held it chief justice john roberts writes, quote, this court doubts that congress intended to delegate decisions of economic and political significance, ie, how much coal-based generation there should be over the coming decades to any administrative agent is i, end quote. chief justice roberts continues that this view of the epa's authority was not only unprecedented but that it also affected a fundamental revision of the statute, the law, changing it from one scheme of regulation into an entirely different kind the chief justice deciding the

original purpose of the law was more that was never intended to be president biden reacting to the decision swiftly saying, quote, this is another devastating decision by the court that aims to take our country backwards. the court's decision risks damaging our ability to keep our air clean. president biden will not relent in using the authorities that he has under law to protect public health and tackle the climate change crisis. end quote. the decision certainly a victory for certain parts of the fossil fuel and power generation industries the court has expressly stated it is the power of congress not the epa or federal agencies to enact and enforce sweeping regulations over an industry this case largely came about in spite of a rule on coal. they are not reacting positively probably because the market already anticipated it and the three big coal companies' stocks are already up 140 to 150% in

the past year as coal use booms around the world >> yeah, perhaps maybe world events and everything going on have done more to make the case for high fossil fuel usage than this decision alone could. brian, for now we'll leave it there. more next hour we appreciate it very much our brian sullivan coming up, bitcoin is down 40% this month back below 19,000 earlier today. how long could this crypto winter last? we'll explore the latest plus, more than 90% of the names in the renaissance ipo etf down 25% from their highs our trader has three names from the group he's scooping up and one he wouldn't touch with a ten-foot poll ahead on three buys and a bail. as we go to break a quick check on markets trying to make a run earlier into positive territory. now the nasdaq back down 1%. the dow down nearly that much as the ten-year yield sits below 3% we're back in a moment

welcome back to "the exchange." remember, the all-time high occurred eight months ago a hair under 70,000 on november 10. bitcoin then started cratering all the way down to 40,000 in

late january it was pretty range found for the beginning of the year, even perked up when fed began in march. in may it all fell apart a collapse at the beginning of the month. three ac collapsed shortly thereafter and voyager had to be saved by ftx when they faced insolvency where does it leave us bitcoin down 70% in eight months with far fewer companies in the crypto landscape and a lot less confidence in the short term let's bring in emily parker, the executive director emily, there are some interesting positives to point out. number one, not sure there are any taxpayer bailouts at least yet taking place nor do i hear people asking for it number two, it doesn't seem to be bleeding over into broader systemic risk and into the financial system so, yeah, those are some of the silver linings i would mention >> you named the list of problematic things there are two things affecting

the crypto market. one is not so specific and one is the one that is not is the crypto market has become more tied into equities markets and so some of these larger concerns that are affecting equities markets are affecting crypto as well concerns over interest rate hikes or just general concerns about an economic recession. that's kind of one thing the other thing are, as you mentioned, some things that are very specific to the kripcrypto industry, some that have just had a lot of drama recently so there was the terra luna debacle, and celsius has frozen user withdrawals for weeks now there are two camps here >> yes, so what do you think is most important to follow from here we haven't seen -- we've seen smaumer players, for instance, we haven't seen a coin base doing that to a great extent

that could really change the confidence level we spoke with a guest yesterday who said goldman's digital currency conference in new york was still standing room only crowd. i can't tell if the bulls should want sentiment or where we go where there may be long-term opportunities. >> that will depend on how we get out of this mess, right. all eyes are on celsius as the crypto lender. the problem is that when it comes to decentralized finance, so many of these projects are intertangled they borrow, lend from one another. that's the problem there's a lot of entanglement. i think people are still seeing the fallout. you have one project go down and thrown there can be a domino effect i think there are concerns on the major coin, what happens if there's a problem. there are more things that could

happen so -- but also, again, as we said there's these larger macro concerns which don't have to do with crypto and even if crypto does get its house in order it's still subject to some of the same problems we're seeing affecting the equities market >> finally more in the news today but it looks like gray scale will sue the s.e.c. over not being allowed to become a bitcoin etf. what do you make of that >> so this is basically a big conflict just between a lot of crypto proponents and regulators in general sort of reflects a very different world view on the one side you have the s.e.c., at least participate of the s.e.c., claiming that they are refusing this in an attempt to protect investors and they are okay with, for example, a bitcoin futures etf because futures are regulated by the cftc they feel bitcoin, they cite market manipulation. they claim this is a kind of investor protection. then you have proponents like

grayscale and other etf companies say actually it's the opposite by bringing a bitcoin spot etf under the s.e.c. framework you would protect investors more people are going to buy bitcoin anyway and they would buy in less regulated ways. >> maybe that's the final question the regulatory footing into the crypto boom on, should it look different on the way out even as large a question as combining the s.e.c., this has revealed significant gaps in coverage and obviously they're going to be late in trying to clean all this up after the fact how big should the reforms be, i wonder >> they should and will be very big. the question is when it's not going to be immediate it's going to take a while for any regulation to go through but the key issue here which we've talked about a bunch of times is regulatory clarity. there are so many gray areas in u.s. crypto regulation and what happens is you end up having regulation by enforcement. you have these projects that go off the rails and then the

s.e.c. goes after them that's not the most effective way to regulate an industry. it would be much better to have proactive framework so everybody knows what they should and should not be doing. >> exactly or they'll learn from the price action the hard way. emily, thank you so much we appreciate it today emily parker in the last week cnbc polled about 500 cios for where they stood on the market and respondents are bearish on crypto more than half saying bitcoin will end below 20,000. i guess that's sort of where we are right now. for more head to cnbc.com for the entire survey results. also, kripcrkryptonite in a runs the latest on crypto companies facing these crises. you don't want to miss it. 6:00 p.m. eastern time still ahead the etf negative in june. raymond james is bullish on the

space initiating commerce companies with the outperform. the analyst himself calls the move bold. he joins us ahead. plus, china is apple's second largest market but the company expected to take a multibillion dollar hit to revenue from china this quarter is a rebound now under way and what's it mean for apple's product line that's next. here is a look at the dow heat map. walgreens, salesforce and travelers once again the best of the bunch.

welcome back to "the exchange" on the final trading day of the first half of the year

the dow was down 600 points. currently 162. energy only up 30%, though the two biggest laggards are communication. the top two performers are energy names exxon is up 40%. it's on pace to snap a six-month win streak it would be the best stock in the dow had it not been replaced with salesforce. exxon sales have more than doubled. cruise lines among the worst performing names in 2022 they've lost half their value during what should have been the summer of travel carnival is closing in on a new post-covid low $7.80 was its april 2020 bottom. at the lows today $8.10 a share. another milestone to watch, pinterest on pace for its 12th straight month of losses down

80% in that time it's down 8% now to frank holland for a cnbc news break here is your cnbc news update this hour ketanji brown jackson was sworn in as the supreme court's 116th justice at a small ceremony earlier today. she becomes the first black woman to sit on the nation's highest court. the final set of rulings were set for the final term he served nearly 28 years. police officers fatally shot an emergency room patient outside of dallas. police responded to a call after a nurse spotted the gun. the patient fired the weapon when police confronted him no other people were hurt and the incident is still under investigation. authorities are still looking for a motive and patrick leahy, third in the presidential succession line, undergoing surgery for a broken hip doctors recommended the

operation after the 82-year-old senator fell at his home last night. he will receive physical therapy treatments and is expected to make a full recovery that's the very latest kelly, back over to you. let's get out to kate rooney what's happening >> reporter: ftx is closing in on a deal to buy blockfy the price tag $25 million, with an m, a drop compared to blockfi's last valuation of $4.8 billion. the term sheet is almost over the finish line. expected to be signed by tomorrow it may have been a catalyst for getting the deal signed. multiple offers were on the table. "the journal" reported ftx was seeking an equity stake. an outright deal was in the works.

the fire sale, kelly, comes a week after ftx gave a $250 million emergency loan to blockfi. billionaire ceo of ftx has really been seen as a lender of last resort. they provided a $500 million loan to voyager, another crypto lender the latest fallout they are pretty much getting wiped out. writing off the value. blockfi had raised almost a billion dollars in funding >> kate, how deep are ftx's pockets and why have they emerged as the one with all the dry powder here that can now potentially roll up half the industry >> such an interesting question, kelly. we don't have a lot of insight

into how much cash is on at least the balance sheet for ftx i'm told is a profitable company. coinbase and robinhood have seen a slowdown you would think that would be a hit in terms of what they could afford i'm told that might be a reason they may not be able to afford a robinhood deal they have been doing m&a and shopping around here and likely taking advantage of the drop in valuations and the opportunity here also seen as a life line for companies that don't have the fed. he's been seen as propping up some of the companies. a failure of a big crypto company not seen as a great thing could really weigh on his business as well >> it's fascinating. so many echoes of history whether it was the original jpmorgan or the financial crisis very active with the space under pressure kate, thank you very much. our kate rooney reporting. still ahead, the renaissance ipo etf, names like robinhood,

down 50% and for a lot of components it's even worse this name down 70% year to date. why does my next guest say it's a buy? a special ipo edition of 3 buys and a bail straight ahead. ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there.

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welcome back 2022 has not been kind to many corners of the market. it's been especially brutal for recent ipos. the renaissance ipo etf down 48% this year. it's on pace for its worst quarter ever and nearly 30 names on the list are down more than 50% year to date so where are the opportunities joining me now cnbc contributor steve grasso, and he has 3 buys and a bail for us today. three names at least the ev truck maker, $100 billion, down 74% this year with supply chain and inflationary problems you say it's a buy why? >> well, i still own it so it would be inconsistent if i didn't think it was a buy and maybe it was you have to realize, though, kelly, when it did come out ipo

we were in a completely different market environment we were in a growth phase. we were in buy any growth that you can get your hands on. so was it mispriced? i don't know maybe it wasn't for the environment but it was poor timing so now when you look at it what's been the major head winds for it production so they have to figure out how to produce more vehicles seems obvious but what most people are worried about is cash they have $17 billion in cash, kelly. they have enough to last through their growth phase all the way to 2025. that, to me, should be more than enough time to get production in line, to get into a better growth environment so i'm sticking with it, plus you have amazon there as a little bit of a support ordering their commercial vans. i think it's still a buy and, of course, much bigger buy at these levels than originally at the

ipo. >> let's move on to your next buy, esoteric. why this one >> well, all these names on this list are going to suffer from the same thing no one wanted to be involved with any growth name that was reliant on low rates you're paying for that future growth even the apples and the amazons of the world were hit when we switched from growth to value. now when we look at a possible recession looming people don't want, investors don't want to purchase anything that's not in the proven growth bucket this one is the amazon of south korea. it's going to service asia, service america. morgan stanley called it a compelling value in the last couple of days this has mistimed the market as

well for you to pick up this one going into the next growth cycle, and there will be a next growth cycle i think this is a tremendous valuation. >> let's move on to ui path. they're down 56% this year very similar performance they announced they're trimming 5% of the workforce. why does this one jump out to you? >> this one was a restructuring element to it that made me feel as if this could be constructive going forward. they seemed to have bottomed out in the middle of may there's something else -- you don't want to look at names that have not been hit hard my caveat if the market gets hit again these are not going to be immune two-thirds of stocks trade with

that caveat. i've said that over a decade none of these will be immune regardless of what bucket they're in growth or value this will focus on aviation, ai. they're going to lay off people and rely more on ai and automation and this should be in the sweet spot they were front loaded for growth environment changed, they changed. that's why i feel as if they're pivoting while others are standing still, why i think it's my third buy >> your bail surprises me. it's palantir, a company that has a long, proven track record, granted the shares have gone down 50% why would you stay away from here >> i'm going to give the positive on my bail as well.

they look like they've also bottomed in may. any stock down this substantially is ripe for a balance. my problem with palantir they're too reliant on government contracts. in the face of the world that we're dealing with right now with russia/ukraine, this is one that should have been tripping over itself and having buyers line up. we didn't see that do you think the government will spend more money going forward or less? i'll answer my own question, i think spending less money. if you're more reliant on a customer for the bulk of revenue that will be shrinking, you have to bail on that stock. once again, my caveat is this.

the chart tells me all of these stocks probably should rally if the market rallies, but i would think palantir will be dealing with major head winds going forward for their business strategies >> all right, steve, you did it. 3 buys and a bail from this ipo bunch. we appreciate it great to see you today >> thank you >> steve grasso. still ahead, apple reportedly gearing up to launch as many as two dozen new products this fall the lockdowns in china could determine when they are in people's hands all while the zero covid policy is impacting the tech giant next. here is a check on the lag wards. netflix is down 52% followed by airbnb, illumina, docusign and mercadolibre

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everything from its supply chain to even the app store. steve kovac is here to assess the damage, steve. >> this is where everyone will be watching. apple in april this quarter said up to $8 billion hit due to the china lockdowns to its sales how bad was it we can get some hints how the quarter went for apple first the iphone ship times which did not slip you can walk into an apple store right now and pick up an iphone 13 the most profitable product and moved production around in other regions of china in order to get the iphone out morgan stanley saying in a note this quarter knocking down those reports that the next iphone, the iphone 14 would be delayed ubs analysts saying iphone sales were up 13% in china for the month of may as lockdowns loosened in the country. but it was a different story for the mac.

the shutdowns affected the new est macbooks and the macbook pro had a slower hard drive than the previous version and services are less positive thing going on in china for apple. analysts seeing slowing growth in the china app store sales similar to what we've seen throughout the pandemic with other digital services companies. b of a analysts estimating 3% app store growth in china and may versus 11% a year ago. and we'll get the finer results straight from apple when they report earnings. >> it's a good reminder. so much hardware is coming, i guess, what am i seeing about how they're trying to add a button you can pay for gas in your car with airplay in the fall or something. a lot in the works here. >> they do have a lot in the works. the good news for apple, at least, they really have been able to shift and manage this pretty well. what i'm dying to know and what investors are dying to know how

bad was that hit was it close to the $4 billion or $8 billion in the range they gave that's a broad range even then they're still showing signs of growth. they've been able to protect the iphone production pretty well. >> is that because of india? >> they're also moving iphone production to different regions than china, that shanghai corridor is where a lot of production happens but where the lockdowns were, too. they had to shift to other regions the lockdowns weren't so bad and that's why, again, you can go into an apple store and buy an iphone. >> even shifting within china as you pointed out talking about the shutdowns, we'll give them credit and see what else they have up their sleeve thank you very much. steve kovac. up next online retailers have had a rough time lately. one analyst said some names are coming back into fashion and this name down 67% this year a strong buy we'll reveal it and what's got him so bullish next.

welcome back it has been a rough year for a lot of discretionary names as shoppers grapple with rising inflation and a potential recession. we've been keeping an eye on companies in the online e-commerce space especially the ones that have gone public and they've had a particularly tough

go of it like the medical scrubs maker down 81% from its highs. the second hand retailer threadup down 91% and the real real, the luxury retailer, down 87%. but my next guest says these names could be coming back in fashion. fashion. he says figs is a strong buy and is bullish on the others let's bring in raymond james analyst rick patel it's good to see you all right. lay it all out for us. >> thanks for having me on i think the key here is starting with the health of the consumer, so when we think about the consumer, we do believe that she remains coming strong. coming out of covid there is $2.5 trillion of excess savings that was accumulated during the pandemic and 17,000 per household and our strategy team at raymond james estimates 10% of this has been spent, so i think there's a lot of purchasing power in terms of dollars that could be deploy during discretionary products

and where that spend is going, whether it's going for services, things like travel and eating out as opposed to buying goods, we ran a survey recently and 75% of the people we surveyed plan to spend the same, if not more on things to wear in the next six months versus year to date so i think the purchase intent remains pretty strong here >> j.p. morgan shows a ten-point increase in consumers paying bills. it is up 35% which is the highest since the pandemic >> look, inflation will be a macro overhang, right? it's not a new data point in terms of a friction point, but we're focusing much more on the spending power, and i do believe that that remains quite strong and the survey does support the notion that there is an intent to buy more in the last half of the year >> for company like figs and we mentioned thread up and the real real are they profitable? >> figs is very much profitable

and we believe it will be in the ballpark of 17.5% and that's takering into account what they have with airfreight related to supply chain issues and we have that going into next year. thread up is profitable. we don't see them reaching profitability for the next two years. so if we're looking through these names and 80% to 90% declines are extraordinary where do you think figs should be worth versus where it's trading today. >> this is a company where we have a price target that applies about 25% upside from where it is right now at the end of the day, i think it boils down to execution and having a very strong rate of revenue growth and we estimate revenues will be growing at about a 25% over the next few years at least. >> and figs is trading at under $25 a share right now and an ipo of 20. that's the strong buy, you have six outperforms, etsy, and

thread up and poshmark how many of these companies survive as solo entities and is there any possibility that we were speaking with jen about this yesterday, could they end up being taken out by a walmart, by an amazon or by a macy's, for instance, by each other? >> never say never when it comes to acquisition in this space i think for a lot of these companies their underlying fundamentals remain strong despite what valuations might be doing at this moment so when i think about a company like figs our price target is $15 and it's a very strong business and i think the bigger question is whether the companies want to be taken out at these depressed levels and it's down about 55% at the levels right now, close to trough versus where the average is and the question begs, do the founders want to sell at these levels or do they want to be

confident about the long-term trajectory >> do they maintain control? is it up to them >> it depends on the company, and some of the recent ipos that have certain voting rights in terms of where the founders' control is and it's under the founder's control whether they decide to sell or wait it out. >> that could make it harder for those that are hoping consolidation will be a factor in the bull case nevertheless, rick, thanks for coming on and digging into it for us rick patel today up next, one area of housing improved this month while another sharply dropped to its worst since 2007 we'll discuss after this quick break. ♪ ♪ ons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay...

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lemons. ♪ and never wonder if you got a good deal. because you did. ♪ welcome back, everybody. housing supply is building which sounds great, right? unfortunately, prices are still at record highs. diana olick is here with the latest data and what it will

take, diana, to bring affordability back to the market >> that's right, kelly that's the biggest question. the number of active home listings jumped at the fastest annual pace on record since june or at least since realtor.com began tracking this five years ago, up close to 19% and new listings finally surpassed typical pre-covid levels the market seeing the biggest gain in supply are some of the hottest pandemic plays austin inventory up close to 145% year over year. phoenix up 115% and raleigh up close to 112 the markets are still seeing a drop in supply, miami down 16%, chicago down 13 and virginia beach down 14% now don't get too excited that all this new supply is helping with prices. the median listing price hit another record high in june of $450 t $450,000 they're still up 51%

the share of larger, more expensive homes is rising and that skews the number slightly higher as a result, affordability in the second quarter of this year dropped in the vast majority of the nation with higher prices and much higher mortgage rates, the costs of owning the median priced home in q2 required 31.5% of the average u.s. wage that's the highest since 2007 and up from just 24% the year before that's also the biggest jump in more than two decades. lenders generally see 28% as the ceiling for lending and that's why some potential homebuyers today are no longer qualifying for a mortgage, kelly. >> i keep hearing horror stories about soaring rents. >> yeah. absolutely we are seeing some of those gains moderate a little bit, though you're seeing that in apartments, but the single-family rents are still extremely high and that's only going to get worse as more people are unable to afford to buy a home what are they going to do? they will have to rent and that

pushes demand higher >> diana olick with the latest on housing another industry going through pain rid now, the airlines we have the latest cancellation numbers and they're pre-cancelling and apologizing already for july fourth and what will it take to get it back in force? that's the latest on "power lunch" which starts right now. ♪ ♪ and welcome to "power lunch. i'm eamon javers in for tyler matheson the supreme court strips the epa with some of its power dealing a major blow to the biden administration's climate agenda. this hour, its impact on business and what it means for eig investing. crypto crisis and that's how one analyst is describing the collapse in prices, but he's also betting coinbase will come out of this rough patch stronger and we'll ask him how he thinks that eamon, welcome stocks off well off session lows and the dow is offugst